Money News

Care home costs 'can exceed mortgage payments'

When an older person moves into a care home it can cost more than their mortgage payments, but not enough people are preparing for this, says Saga.

The average annual cost of care is currently around £35,000 but research by the financial services provider shows that a third of parents have not looked into how they might fund this change.

Andrew Goodsell, chief executive at the Saga Group, claims this cost is more than most people pay in mortgage repayments, but that it is necessary to pay this amount in certain circumstances.

He says: "Older people are fiercely independent and the vast majority hope to spend their final years living at home. Sometimes, specialist care is needed."

The research also indicated that a quarter of those surveyed would feel too guilty if they sent their parents to live in a care home, while 21 per cent of those who had put their parents in care felt guilt about having done so.

In previous research carried out by the organisation, it was found that 62 per cent of over-50s would happy to move in to care home if they required 24-hour care in their later years.